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In Albania, electronic invoicing has become increasingly important in recent years, especially with the digitization of the tax system and compliance with tax regulations. The main legal frameworks for electronic invoicing in Albania are based on national laws and international standards that the country has adopted.
Here are the relevant legal foundations for electronic invoices in Albania:
- VAT Law (Ligji për Tatimin mbi Vlerën e Shtuar – TVSH)
The most important law regulating the tax requirements for electronic invoices in Albania is the VAT Law (TVSH Law). It ensures that electronic invoices are recognized for tax purposes if they meet certain requirements:
- Article 10 of the law states that an invoice must be issued when goods or services are sold, and this invoice is considered legally valid for tax purposes even if it is created electronically.
- Article 13 requires businesses to ensure the authenticity and integrity of electronic invoices through appropriate technical measures.
- Regulation on Electronic Invoices and Electronic Transmission of Invoices
The Regulation on Electronic Invoices (Regullore për faturat elektronike) outlines the specific requirements and procedures for the creation, transmission, and archiving of electronic invoices in Albania. Key aspects include:
- Creation and Transmission: Electronic invoices must be created in a structured format such as XML, UBL, or EDI to ensure they meet technical requirements and tax reporting obligations.
- Authenticity and Integrity: It is emphasized that the authenticity of electronic invoices and the integrity of the content must be ensured by appropriate security measures, such as electronic signatures or other technologies.
- Data Transmission: The electronic transmission of invoices to tax authorities must be secure and reliable.
- Electronic Invoicing and the e-Fiskal System
Albania has developed a system called e-Fiskal to promote electronic invoicing and compliance with tax requirements. The e-Fiskal system allows businesses to transmit electronic invoices directly to tax authorities. It is fully integrated with the Ministry of Finance and the Albanian tax authorities to prevent tax evasion and increase transparency.
- Since 2018, businesses that are VAT registered have been required to submit their invoices electronically via the e-Fiskal system.
- Starting in 2021, the e-Fiskal system was expanded and made mandatory for all relevant business transactions between companies and tax authorities to be transmitted electronically.
- Electronic Signatures and Security Requirements
The electronic signature plays a central role in Albania to ensure the authenticity and integrity of electronic invoices. The legal framework for this is outlined in the Electronic Signature Law (Ligji për Nënshkrimin Elektronik).
- Qualified Electronic Signatures (QES) are required to ensure the legal validity of electronic invoices. These signatures ensure that the invoice remains authentic and unchanged, and that the sender can be clearly identified.
- Certified providers of electronic signatures must be used to meet the necessary standards and requirements.
- Archiving Obligations
As in most countries, electronic invoices in Albania must be archived for a certain period to make them accessible for potential tax audits. Archiving must comply with Albanian tax requirements:
- Electronic invoices must be archived for at least 5 years, and the integrity of the invoices must be maintained during the entire retention period.
- The archiving must ensure that the data cannot be altered and that invoices remain legible at all times.
- Future Developments and Expansions
The e-Fiskal system and electronic invoicing in Albania are still in a continuous development process. It is expected that with the increasing digitization and expansion of the system, further technological solutions and requirements will be introduced to improve tax enforcement.
Summary of Legal Foundations in Albania:
- VAT Law (TVSH Law): Electronic invoices are legally valid if authenticity and integrity are ensured.
- Regulation on Electronic Invoices: Regulates the creation, transmission, and archiving of electronic invoices.
- e-Fiskal System: Requires the electronic transmission of all invoices to the tax authorities for VAT-registered businesses.
- Electronic Signatures: Qualified Electronic Signatures (QES) are necessary to ensure the legal validity of electronic invoices.
- Archiving Obligations: Electronic invoices must be retained for at least 5 years.
Conclusion:
In Albania, electronic invoicing is well-regulated through the e-Fiskal system and corresponding legal provisions. All businesses that are VAT-registered are required to transmit their invoices electronically, and the electronic signature is an essential component for the legal recognition of the invoices. Businesses must ensure that their electronic invoices comply with tax requirements and archive them for at least 5 years.